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Re:'We're in a Bubble' by coldtea on Tuesday June 14, 2016 @10:22PM (#11906829)
One difference between a bubble and a declining market segment is that the bubble bursts -- abruptly.

So it doesn't matter whether people repeat prophecies or doom for a long time or not -- unless it's actually a bubble, it won't ever burst. At worse it will start declining slowly.

That's why the arguments like "it hasn't burst all those years so it's not a bubble" don't get it either.

Being a bubble is not something that has to do with duration (whether it lasts for a long time or not) -- it has to do with the non-linear effects of the burst.

Of course it the burst never comes, or it's instead some gradual decline, then it's not a bubble.

Re:'We're in a Bubble' by VladKovac on Wednesday June 15, 2016 @01:09AM (#11907269)
So you're telling me you can only tell if it isn't a bubble if the market steadily declines eventually? Also how much should it steadily decline by before we're sure it's not some local decline phenomenon unrelated to the bubble?

Whatever "bubble" means, it should probably only be used as a description of an abrupt crash in retrospect, otherwise we're always in a non-falsifiable bubble state. Saying "We're in a bubble" really just means colloquially "I think this market segment is overvalued", probably not much more than that.

Re:'We're in a Bubble' by coldtea on Wednesday June 15, 2016 @08:58AM (#11909017)
>So you're telling me you can only tell if it isn't a bubble if the market steadily declines eventually?

No, that's just its defining characteristic. You can "tell" by other signs too -- but they could be misleading.

>Whatever "bubble" means, it should probably only be used as a description of an abrupt crash in retrospect, otherwise we're always in a non-falsifiable bubble state.

That's the case with every phenomenon that depends in the final result for its definition. E.g. is an act X "beneficial"? We might have some heuristics, but we can only certainly know from its effects after it is completed.